After a short-lived spike in early summer, mortgage rate has been declining for several weeks. Nowadays, you can refinance to a 5/1 ARM at 4.125% with zero points. It's not as good as the 3.50% rate I got for a 5/1 ARM earlier this year, but is still a very good rate.
Now, if you are about to refinance, read this timely warning from Bankrate. You should watch out if your lender displays one or more of the following behaviors:
- Encourages you to falsify your application information to get the loan.
- Urges you to borrow more than you need.
- Pushes you to accept payment terms that you can't realistically meet.
- Fails to give you the required disclosures (e.g., APR, rescission rights, etc.).
- Shows up at closing with a totally different loan product than you agreed to.
- Asks you to sign blank forms. ("It'll speed things up. We'll fill in the blanks later, trust me.")
- Denies you copies of documents you signed.
Big money is being made in the lending industry and where there is big money, there are bad apples. Don't become a victim of these unethical business practices.